It is widely assumed that banking markets
have become progressively more concentrated
over time. Statements to that effect
appear frequently in the financial press and in
testimony regarding prospective changes in
banking laws. For states in the Seventh District,
however, the evidence does not appear
to support such an assertion. In part, this
reflects the fact that the federal bank regulatory
agencies, acting under the Bank Holding
Company Act of 1956 and the Bank Merger
Act of 1960, have refused to approve acquisitions
that would result in substantial increases
in concentration. Since the revisions of these
acts in 1966, the competitive standards have
essentially been those of sections 1 and 2 of
the Sherman Antitrust Act and section 7 of the
Clayton Antitrust Act. This article reviews the
changes in banking concentration in Standard
Metropolitan Statistical Areas (SMSAs)
and non-SMSA counties in Seventh District
states during the period 1965-79.